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This week Giant Interactive (GA) reorganized its five development teams into five daughter companies, with Giant holding 51% of equity and the teams 49%. The event was reported by the Chinese media, but not by the English media yet.

For background knowledge, here is a short description from Yahoo Finance about Giant.

Giant Interactive (GA), a Chinese online game company, announced its preliminary results for Q3 yesterday morning. It sees its quarterly sales between $40 million and $43 million, which is lower than its guidance of $45 to $50 million issued on August 18th.

Giant Interactive Group, Inc. (GA)

Q2 2009 Earnings Call

August 19, 2009 8:00 am ET

Giant Interactive (GA), which yesterday reported a giant Q3 guidance shortfall, now has one less giant financial institution rooting it on.

Citigroup analyst Alice Yap this morning cut her rating on the China-based online games company to Hold from Buy, slicing her target price to $8.60, from $9.50. She writes that the company’s weak outlook reflects three factors:

• The impact of new China currency regulations.
• Weaker-than-expected traction of its latest expansion pack for its ZT Online game.
• Lack of new revenue drivers in absence of new game launches.